(function(){
var COOKIE_NAME = 'menthorq_utm_params';
var LS_KEY = 'menthorq_utm_params';
var UTM_KEYS = ['utm_source','utm_medium','utm_campaign','utm_term','utm_content','utm_id'];
var CLICK_ID_KEYS = ['gclid','fbclid','msclkid','ttclid'];
var COOKIE_DAYS = 30;// Read UTM parameters and click IDs from current URL
var params = new URLSearchParams(window.location.search);
var trackingData = {};
var hasData = false;
var allKeys = UTM_KEYS.concat(CLICK_ID_KEYS);
for (var i = 0; i < allKeys.length; i++) {
var val = params.get(allKeys[i]);
if (val) {
trackingData[allKeys[i]] = val;
hasData = true;
}
}if (hasData) {
// Fresh tracking data found in URL — store it (overwrites previous attribution)
trackingData.captured_at = new Date().toISOString();
setCookie(COOKIE_NAME, JSON.stringify(trackingData), COOKIE_DAYS);
try { localStorage.setItem(LS_KEY, JSON.stringify(trackingData)); } catch(e) {}
return;
}// No tracking params in URL — check if cookie exists
if (getCookie(COOKIE_NAME)) return;// Cookie is missing (expired or first visit) — try to restore from localStorage
try {
var stored = localStorage.getItem(LS_KEY);
if (stored) {
var parsed = JSON.parse(stored);
if (parsed && (parsed.utm_source || parsed.gclid || parsed.fbclid || parsed.msclkid || parsed.ttclid)) {
setCookie(COOKIE_NAME, stored, COOKIE_DAYS);
}
}
} catch(e) {}// Helper: set cookie
function setCookie(name, value, days) {
var expires = new Date(Date.now() + days * 864e5).toUTCString();
var cookie = name + '=' + encodeURIComponent(value) + ';expires=' + expires + ';path=/;SameSite=Lax';
if (location.protocol === 'https:') cookie += ';Secure';
document.cookie = cookie;
}// Helper: get cookie value (returns empty string if not found)
function getCookie(name) {
var match = document.cookie.match(new RegExp('(?:^|; )' + name + '=([^;]*)'));
return match ? decodeURIComponent(match[1]) : '';
}
})();
var breeze_prefetch = {"local_url":"https://menthorq.com","ignore_remote_prefetch":"1","ignore_list":["/account/","/login/","/thank-you/","/wp-json/openid-connect/userinfo","wp-admin","wp-login.php"]};
//# sourceURL=breeze-prefetch-js-extra
In this lesson, you’ll explore critical correlations between currency pairs, commodities, and major indices that every forex and metals trader should understand. These relationships are driven by fundamental economic factors like export revenues and production capabilities that directly impact currency valuations.
We start with the Australian dollar (AUD) and its strong correlation with metals like copper, gold, and silver. Because Australia is a major producer of these commodities, the Australian economy is closely tied to metal price fluctuations. When gold prices rise, Australia benefits from increased export revenue, strengthening the AUD. When metal prices decline, the AUD weakens due to decreased export earnings. The chart demonstrates this relationship with gold in yellow and Australian dollar in red, showing correlation values sometimes close to one, indicating perfect correlation.
Next, you’ll learn about the Canadian dollar (CAD) and its relationship with oil prices. Canada is one of the largest oil producers, making the Canadian economy closely linked to oil market performance. Rising oil prices increase the value of Canadian oil exports, leading to stronger economic growth and currency appreciation. Falling oil prices reduce export revenue, weakening the economy and putting pressure on the CAD. The lesson also covers the Japanese yen (JPY) correlation with global stock indices like the DAX, Nikkei, and S&P 500. As a safe haven currency, the JPY shows an inverse correlation with major stock indices during market volatility, as investors seek safer assets when markets drop.
The lesson concludes with the relationship between the S&P 500 (SPX) and Bitcoin. In recent years, Bitcoin has evolved from being viewed solely as a digital alternative to gold, with its correlation to the S&P 500 growing during periods of market stress like COVID and recent turmoil. In a risk on environment with positive investor sentiment and SPX rallies, Bitcoin tends to follow the same pattern, with the opposite occurring during downturns.
Understanding these macroeconomic correlations helps you anticipate currency movements based on commodity prices and market sentiment. You can use these relationships to make more informed trading decisions by monitoring the performance of correlated assets alongside your primary currency pairs.
Video Chapters
00:00 – Introduction to forex and metals correlation
00:31 – Australian dollar and metals correlation
01:17 – Canadian dollar and oil relationship
02:04 – Japanese yen and stock market indices
02:50 – S&P 500 and Bitcoin correlation
Key Takeaways
The Australian dollar (AUD) has a strong correlation with metals like copper, gold, and silver due to Australia’s major production role
The Canadian dollar (CAD) is closely linked to oil prices because Canada is one of the largest oil producers
The Japanese yen (JPY) shows an inverse correlation with global stock indices as a safe haven currency during market volatility
Bitcoin’s correlation to the S&P 500 has grown during periods of market stress, moving together in risk on environments
Video Transcription
[00:00:00.12] - Speaker 1 So now let's go back to kind of like the Forex, right? And let's look at some important correlation that any trader that is trading Forex or metals should be aware of. So first we start with the correlation with metals and the Australian dollar. So the Australian dollar or AUD normally has a strong correlation with metals like copper, gold and silver. And this is primarily due because Australia is a big producer of these commodities.
[00:00:31.15] - Speaker 1 So as a major producer of gold and other metals, the Australian economy is obviously closely tied to the fluctuation in the market. Right? So when the price of gold goes up, the Australian economy benefits. There's, you know, there's an increase in export revenue and this also strengthen the Australian dollar. When the metal price decline, the Australian dollar may weaken because export earnings are decreasing.
[00:00:56.24] - Speaker 1 So this is obviously macroeconomic, right? But in this chart what we see is the correlation between gold, which is in yellow, and the Australian dollar which is in red. So you see there's a very strong correlation. You can see it at the bottom of the chart in the blue areas that are sometimes also close to one. So perfect correlation.
[00:01:17.27] - Speaker 1 The second correlation that we should be aware of, it is Canadian dollar and oil. So the Canadian dollar or cad, they have a very big relationship with oil prices. And this is largely due because Canada obviously has a very important role in the export of oil. Oil is one of the largest resources in Canada. Canada is one of the largest producer.
[00:01:40.05] - Speaker 1 So really the Canadian economy is closely linked to the performance of the oil market. So when oil prices rise, the value of the Canadian oil exports increases, leading to a stronger economic growth and often corresponding to the appreciation of the currency. On the other hand, when the oil prices fall, there's less revenue coming from oil export. And this can kind of weaken the economy, putting pressure on the Canadian dollar. Right.
[00:02:04.29] - Speaker 1 So we can see it here as well. This is like the same chart showing Canadian dollar, oil price and correlation at the bottom. The third correlation is Japanese yen and stock market indices. So the JPY is often correlated with global indices such as the DAX in Germany, the Nikkei and the S&P 500. It's normally seen as a safe haven currency.
[00:02:30.17] - Speaker 1 So during market volatility, when the market drops, typically investors try to seek refugee on safer asset. And JPY is typically one of them. So we see an inverse correlation between JPY and major stock indices.
[00:02:50.23] - Speaker 1 And the last one, let's go now to the crypto side, is really the relationship between S&P 500, so the SPX and Bitcoin. So in the recent years, more investors view Bitcoin as both a speculative asset, but also as a potential hedge against the traditional financial market. So initially, Bitcoin was seen as a digital alternative to gold, and its correlation to The S&P 500 has grown, especially during a period of market stress, like we've seen during COVID or during the recent turmoil last year. So when we see a risk on environment, when investor sentiment is positive and the SPX rally, the same happens to Bitcoin and the opposite happens on the other side. So again, you can see from the chart, we see SPX Bitcoin and we see the correlation at the bottom of the character.
var menthorq_gtm = {"system":{"ajax_url":"https:\/\/menthorq.com\/wp-admin\/admin-ajax.php","nonce":"369163c911","site_url":"https:\/\/menthorq.com","home_url":"https:\/\/menthorq.com","timestamp":1773383354,"environment":"production"},"debug":{"enabled":true,"environment":"production"},"user":[],"container_id":"GTM-599ZCR89"};
